Calculation model (Provisioning, Risk Weighted Assets)

Business case

Challenging the IRBA credit model of a private bank to prepare for Basel IV

Goals :

• anticipate the impacts of Basel IV and your RWA consumption
• challenge the existing advanced model in comparison to the standard model
• identify the strengths, weaknesses and savings to mobilise in the short and medium term

Kt consulting carries out an independent review of the existing setup in collaboration with your risk and finance departments. We check the applied segmentation and end-to-end data feedback. We carry out a synthesis of the strengths, weaknesses and anomalies identified.

We assist your risk and / or finance department in order to compare the existing model by projecting its application with the most impacting parameters of Basel IV (output floor, etc.) and the characteristics of your goodwill and outstqnding exposures.

We challenge the existing setup (management cost, back-testing, RWA consumption) comparing it to the standard method in order to anticipate the life cycle management of your model, and help you generate savings (modeling and resources costs, time savings on the model(s) management, audit trails for your internal control and regulators).